Current Liabilities

RSS
Modified on 2010/06/24 10:09 by swathen Categorized as Accounting
See Also:
Balance Sheet
Current Assets
Fixed Assets
Fixed Assets - NonCurrent Assets
Long Term Debt
How to Develop a Chart of Accounts
Standard Chart of Accounts
How to collect accounts receivable
Working Capital
Working Capital Analysis
Quick Ratio Analysis
Current Ratio Analysis
Financial Ratios


Current Liabilities

Current liabilities is a category of liabilities on the balance sheet. The category consists of debts and other financial obligations expected to be paid or settled within one year or within one normal operating cycle of the business (whichever is longer). The balance sheet also includes a category for long-term liabilities.

Current Liabilities Items

Examples of items considered current liabilities include accounts payable, wages payable, short-term debt or Notes Payable, and current portion of long-term debt.

Current Ratio, Quick Ratio

Two key liquidity ratios, the current ratio and the quick ratio, are calculated using current liabilities.